(WO) — Comstock Resources Inc. reported higher third-quarter earnings on improved natural gas prices and continued strong drilling results in the Haynesville and Bossier shales, while moving forward with the sale of its Shelby Trough assets for $430 million (USD).
Image: Comstock Resources
Natural gas and oil sales, including hedging gains, rose to $335 million, generating $190 million in operating cash flow. Adjusted EBITDAX totaled $249 million, and adjusted net income was $28 million ($0.09 per share).
Comstock produced 112 Bcf of natural gas in the quarter, realizing $2.99 per Mcf after hedging. Production costs averaged $0.77 per Mcfe, resulting in a 74% operating margin after hedging.
Drilling activity remained concentrated in the Haynesville and Bossier shales, where the company drilled 17 wells and turned 12 to sales during the quarter. Three Western Haynesville wells posted an average 32 MMcf/d initial production rate with an average lateral length of 8,566 ft.
Since July, Comstock has brought 10 wells online with initial rates averaging 28 MMcf/d and lateral lengths exceeding 11,000 ft, underscoring continued high deliverability across its acreage.
Divestitures remain a strategic focus. In September, Comstock sold legacy Cotton Valley wells in East Texas and North Louisiana for $15 million, followed by an October agreement to divest its Shelby Trough properties spanning roughly 36,000 net acres and 155 producing wells. The transaction is expected to close in December 2025, with proceeds earmarked for debt reduction.
“Higher natural gas prices in the third quarter drove improved financial results,” the company said in its earnings statement.
Comstock plans to host its quarterly earnings call on Nov. 4 at 10 a.m. CT via webcast and teleconference.
